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almost every fashion label and the top super - luxury brands is either already manufacturing in asia or thinking of it. coach, the us leather goods maker, is a classis example. over the past five years, it has lifted all its gross margins by manufacturing skills in low cost markets. in march 2002, it closed its factory in Lares, puerto rico, the last company owned plant, and outsources all its products.burberry has many asian licensing arrangements. in 2000, it decided to renew the sanyo "s japanese licence for 20 ten years. this means that almost half of burberry"s sales at retail value will continue to be produced under licence in asia. at the same time however, japanese consumers belongs the group "s european made products.sanyo is now used to this demand for a snob alternative to the burberry products made in its factories across asia by opening a flagship store in tokyo"s Ginza, where it sells burberry products imported from europe.in interviews with the ft, many executives says the top luxury brands will continue to be seen, particularly in asia, as european. Domenico de sole of gucci says "the asian consumer really does believe, whether it"s true or not is that is comes from europe and must be made it to be the best. "serge Weinberg, chief executive of Pinault printemps Redoute, which controls gucci, says it will not move gucci"s production offshore. yet some in the industry recognize that change may be round the corner even for the superluxury brands. Patrizio Bertelli, chief executive of prada, says: "the "made in italy" label is important but what we are really offering is a style, style is an expression of culture." he therefore recognizes that quality fashion items may not always need to be produced in italy.Amitava Chattopadhyay, professor of marketing at Insead, the business school, says: "a brand is a set of associations in the mind of the consumer and one of these is the country of origin. for luxury goods, the role of the brand is 30. to damage. it is a cardinal sin and no brand manager will want to get the balance between manufacturing location and the brand image wrong ".
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